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https://www.nextoilrush.com/when-oil-met-gas-88e-in-the-sweet-spot/

When Oil Met Gas: 88E in the Sweet Spot

This article shows 88E with Burgundy to be new leading edge oil exploration company. 570% SP rise!!!

Momentum has slowed down since then. And SP lost much of that historic gain.

Behind the scenes 88E and Burgundy really are pulling out all the stops. Key is:

3D Seismic focus on Conventional
and
Expert study and report on Icewine 2 for unconventional

can unlock forward momentum again.

Can this happen during last 4.5 months of 2018?

Farm Out for conventional

Farm Out for unconventional

Simples.....Phrontist

HardToHandle, I agree entirely.

Shareholders own the company. The BoD are elected by us to run the business.

We have a good BoD, and much of the last 4 years have gone very well.

But that does not mean we have to agree with everything that happens and everything they commit to.

This BB is a place for shareholders to air their points of view. It is a good release, a good educator, a good pipeline to BoD of shareholder sentiment.

It is sad for family and friends, sad beyond anything that PB died. His energy and input must have affected success and direction. We have to live with this.

Now the mystery of Icewine 2 non-performance grips us. Everything else is of little interest to me. Conventional will flow sometime in the future. But the scale of conventional is much smaller than the scale of unconventional. I am confident that by the end of 2019 much more oil resource of both will be discovered.

I think Unconventional flow should be first. This will wind the SP up and enable funding for conventional diversification.

But it should be first also because this is where most of the shareholders funds have gone since H2 2014. Finish one job before you start (too many...) other jobs!

It is still the middle of August, in theory work could be going on at Franklin Bluffs. Perhaps the specialist team with Eric are there now. I hope so.

And hopefully a little RNS on the 3D Seismic progress. Maybe it is not a suitable activity for easy half-way reporting. Many computer tasks are "in progress" or "finished", part done means nothing.

Meanwhile, vast oil resources of conventional and unconventional languish a mile or two below ground on our North Slopes acreage. We can be confident of that. And this underwrites our SP until oil does actually flow somewhere.

Phrontist

Sorry, said it wrong way round:

Franklin Bluffs is about 35 miles South West of the epicentre

P

….don't return until St Leger Day (mid September)

This used to be true, but business sophistication and global activity etc have made this old saying a bit obsolete. Yet 88E activities seem to predict News will be earliest mid-September anyway. I am not risking selling anything, it will trigger an SP rise!!!

Will the earthquate help Icewine 2 gurgle up some oil?

The quake reached 6 miles deep with Franklin Bluffs about 60 km (35 miles) North East from the quake epicentre.

Icewine 2 HRZ layer is about 2 miles deep, so within some moving and shaking vibrations.

Apparently Alaska was well set up a few years ago for monitoring earth quake activity. There will be comprehensive digital records.

Last Sunday was a 6.9 whopper, a record for the region. And fortunately we are in the middle of Expert Analysis of Icewine 2. I have my fingers crossed. Selling at 1.2p only to see SP = 4p in a week or two would be tragic. But possible. The best news is always when least expected!!

Phrontist.

Gumball, at least you still manage to keep sense of humour!!!

I have predicted 4p by Christmas.

Yes, I have made some criticisms of 88E. But equally BoD could (ha ha) prove me wrong!!!

So, that should double your money.

Phrontist

Brom, I am surprised you write such 'detail' on here.

Worst that happened to me is being kidnapped by the FARC in Colombia, S America.

And the small matter of ransom demands.....

P

catsize, you are a cat full of surprises.

Where about in Germany? Are you retired there?

Phrontist

St Ant, deal is good. This business has many years of the long and winding road to go yet. Which means many discussions. And hopefully many Capital Refund's. ))) ATB Phrontist

St Ant, which ever Project comes in first with $$$ proceeds, I think most people will be happy. Even me.

But when will $$$ revenue start?

I wonder about some shareholders with waffle waffle waffle.

It is simple question - when will $$$ revenue start? When will real cash revenue hit our (88E) very own Bank Account? Then SP will rise.

We are just starting 5th year now since BEX - 88E meet up and conceive Icewine 1.

Many people here are saying, oh we trust BoD, they know what they are doing, let them get on with it.

That is not how business is done. Shareholders (this one anyway) wish to know, when will first revenue start, and from what activity?

I do not expect BoD to change habits of 5 years within next 10 seconds. )))

But I do expect some answers during Q4 (7 weeks away). Time to receive Unconventional Report and 3D Seismic Results.

And if revenue is not planned by end Q1, you all know what will happen to SP.

Phrontist

BRB, how about : Emperor Experience Phrontist

St Ant

The difficulty is if a Secondary Activity (eg New JV, 3D Seismic, Yukon) consumes money that the Primary Activity could have benefitted from.

I am suggesting it is possible that a higher level of expertise last summer could have got oil flow from Icewine 2.

If not, I am suggesting that higher level of expertise definitely would have got Icewine 2 flowing this summer.

It is likely that the BoD did not expect a problem with Icewine 2. If they had known, they may not have allocated financial resources elsewhere prior to ensuring Icewine 2 did a successful Flow Test.

We may never know IF Icewine 2 would have worked with better expertise and electronic sensor and test equipment had been used summer 2017 or summer 2018. )))

Or, now these events are in the past, what will be revealed by this latest expertise group?

IMHO Icewine 2 may well be working NOW if money had not been committed elsewhere starting 18 months ago.

And if Icewine 2 was working now, a Cash Call would have been more acceptable based on e.g. SP = 4p

Phrontist

Take extra sandwiches for the bears, maybe even some steaks!!!

Harry, I have two messages:

Make unconventional on our own leases work before diversifying.

RNS should include target dates for first oil extraction to flow rate, and subsequent oil production.

This is why we are here. Other business objectives are secondary.

Did not the 3D Seismic announcement come with promise of interim Progress Reporting? It is mid-August and nothing. Well, I am sure Busy BoD will provide something shortly. But this is the consequence of not providing target dates for shareholder consumption.

Phrontist

It is also worth remembering:

Franklin Bluffs is not far from Dead Horse with hotels, offices, airport etc. And a short run to vast sub-contractor staff and equipment further North. FB with Icewine 2 is right next to the North-South Highway and the TAPS (Trans Alaska Pipeline).

These conventional projects do not benefit from such close proximity benefits. Costs and risks will be added to any work at Yukon Gold and Western Blocks. Ice roads??? Drilling Rig transport to sites??? Oil transport away from sites to pipeline???

On a nice summer day, you can go from Deadhorse to Franklin Bluffs on a bicycle or scooter !!!!

Phrontist

JofHoggit does not agree with target dates for First Oil and Commercial Oil being publicised. That is his opinion.

What I see in FT.com is extensive forecasting for almost every company listed. Forecasting is standard practice in business.

88E would do well to note this. With no revenue prior to 88E and no revenue during 88E, we are failing to attract big investment.

I sincerely hope that by end of Q1 2019 we have produced some oil from North Slopes. But at todays date the BoD have not committed to achieve this. They can just rumble on from Quarter to Quarter. Then we become a target for hostile takeover etc following SP collapse, who knows?

Phrontist

Moda, this blog is for discussions, all sides of an argument should be viewed.

Running a business does not happen with a handful of black-and-white decisions.

Business development often requires changing track by re-examining options.

I imagine 88E / BEX has many hundreds of discussions and decisions over last 4 years. And many decisions are more than simple Yes or No.

Within this I have stuck to one constant since mid-2015.

I follow PB and his quest for discovery of unconventional oil on Central North Slopes.

Icewine 1 to extract core, locate the HRZ layer, analyse the HRZ for oil properties. Successful.

Icewine 2 to extract oil and assess for commercial delivery. Incomplete after further 2 years.

When complete, the massive HRZ layer can be sold to a Production Company.
Likely oil resource between 3 billion barrels and 9 bb over 20 or so years.
Revenue over time at todays crude price is US$200b to US$600b.

My view was and still is, stick exclusively to Central North Slopes land and to unconventional resource until commercial Flow Rate is achieved.

The BoD decided within the last 18 months to diversify to conventional AND to land outside our leased area.

I am happy with this but ONLY after Icewine 2 has been proven.

The anticipated SP rise from a successful Icewine 2 will easily enable financing of conventional projects on our leased land and elsewhere.

That is my opinion. IMHO. Etc.

BoD are investing in Expert Investigation of Icewine 2 at the moment with Report hoped for in 6 weeks or so at my rough guess. In the course of this investigation they may unravel the Oil Flow problem. So might the earthquakes yesterday!!!

But as minimum, the Report should enable signing a Farm In company to implement Lateral oil extraction. This could be either as upgrade to Ice 2, a new well at Franklin Bluffs, or a new well further away. Money money money. Timescale to horizontal pipe Flow Rate???

I do not agree with expenditure elsewhere until this unconventional project is successful. As a small business, we do not have substantial financial resources. Shareholders bleat everytime Capital Raising occurs.

Having said this, obviously I hope the conventional projects become successful.

But New JV at below 30% Risk Assessment by the Group Parties, is a worse bet than Icewine 2 at 50% success chance. I am surprised at our BoD deciding to take this on prior to unconventional success.

I would also like to see financial projections for New JV and for Yukon Gold. How much do we have to invest before we get financial return? Are we going to sell on, or do production ourselves???

Phrontist

Chartman99 – too much information? Ha ha.

This reminds me of the hatred by the jealous Salieri for the creative Mozart.

https://www.bing.com/videos/search?q=salieri+and+mozart+too+many+notes&ru=%2fsearch%3fq%3dsalieri%2band%2bmozart%2btoo%2bmany%2bnotes%26form%3dEDGNB2%26mkt%3den-gb%26httpsmsn%3d1%26refig%3d11a0e772755b4a729249e744380b35dc%26sp%3d-1%26pq%3dsalieri%2band%2bmoz%26sc%3d0-15%26qs%3dn%26sk%3d%26cvid%3d11a0e772755b4a729249e744380b35dc&mmscn=vwrc&view=detail&mid=486672D07440D09858B0486672D07440D09858B0&rvsmid=9D035131A7A6E37104929D035131A7A6E3710492&FORM=VDQVAP

The Emperor asks his Music Director, what is wrong with Mozart’s new Opera?

The meek reply is – it has too many notes, Sire.

The Emperor says to Mozart – there are in fact only so many notes an ear can hear in the course of an evening!

Emperor continues – and I think I am right in saying that. Am I right Court Composer (Salieri) ?

Salieri answers – Yes. (stab in the back of Mozart)

Mozart’s comment – Sire, this is absurd.

The Emperor instructs Mozart to cut a few notes, then the Opera will be OK.

Ha ha ha.

Chartman, you wish me to write less? ))))

Because you cannot read this much in the course of an evening? ))))

Which parts shall I delete? (((

The URL is an extract from Amadeus, it is a beautiful cutting of photography and acting.
Since 88E News seems flat today, it is a good time to watch this incredible film.

Meanwhile, all of the shares I own cost between 0.5p and 2.0p.
I have not calculated my average, but the current SP is near it.
I have quite a lot of shares and have not done short term buy/sell/buy/sell.

Phrontist.

We are close to Monday Morning for fresh Australian Week of News and Trading.

A little reminder that 88Energy is based in Australia.

Looking at share trading stats, the ASX:88E daily turnover is very small. Indicating that most of Aus Market seems to be LTH, Australian and loyal to this 88E Cause.

Somehow, a very small turnover of shares manages to keep the SP down. The vast majority are holding and are not selling which should make the SP high.

It seems, News (RNS) that involves risk and expenditure does not attract net incoming funds.

It does attract BB (HotCopper and LSE) positive chat giving the impression all is good.

Fact is, no BoD prediction of pulling first barrels of oil on any of 4 (now) projects is unhealthy.

We have 4 continuing lines of expenditure and no predicted lines of revenue. ((((

It is time BoD rectified this lop sided RNS reporting process.

Keeping shareholders in the dark about revenue, year on year is why SP = low and sloppy.

We have Planners, Project Managers, Finance Planners, Geologists (ex 88E).

Surely 88E did a Business Plan when negioting our part in New JV? So target dates should be known - precisely.

We undoubtedly have outstanding oil resources to underwrite a very high SP.

So, I am requesting BoD:

Issue some (only a few...) RNS's that have Target Date of first oil above ground and first oil revenue.

Yes, negotiating Farm In/Out's is exciting. But will there be front End Cash for 88E?
If there are (implied) so many interested parties, this should be a Given Clause.

If BoD are unable to start giving Estimated Revenue on Estimated Dates, then AEA should be sold NOW or SOON for best US$ over $1b (could be $5b...). Without this, shareholders are condemmed to many more Capital Raising issues with associated Share Dilutions.

Phrontist

Good afternoon Lefty thank for kind words.

I did say that the calcs:
Yes, I still feel, a stunning success BEYOND IMAGINATION, and
Phrontist (errors and omissions accepted on quick calculations)

None the less, we regularly remind ourselves:

No one can predict the future.
If we know the history and know the plans for the future, estimates can be made.
88E SP is event driven, which means New News driven.

Many on here simply live for next RNS.....

I like your 1st rate, 2nd rate, 3rd rate structure.

But I remind you, if the professionals were always right:

Why no Flow Rate last Summer?
Why no Flow Rate this Summer?

It is possible that lowly 3rd Rate chaps can make better judgements than 1st and 2nd Rate chaps.

In summary anyone's guess could be right, or wrong.....

Also, I must remind you.

When SP goes up, then goes back down.
Some people gained and other people lost the same amount.

'He' has as many disgruntled investors (gamblers) as happy ones.

We need events to occur such that all investors are happy.
Which requires consistent and held SP rises based on successful events occurring.

Phrontist

mm, I won't be selling out at 30p.

In your case, you need to buy some first …..